FTHB GST Rebate 2025: Changes are being made to make the policies work smoothly. Now everything is in changing mode. The Canadian government made a proposal to make changes in the Excise Tax Act to create a new Goods and Services Tax rebate for first-time home buyers known as the FTHB GST Rebate 2025 on May 27. Via this scheme, the government is trying to encourage people to buy new and affordable houses. The new federal government has proposed this scheme.
Know about the FTHB GST Rebate 2025:
- The FTHB GST rebate 2025 will help the buyers and will encourage those who are buying their own home for the first time. The buyers can recover up to 100% of the GST paid on buying a new home. They can save up to $50,000.
- The new buyers who are going to purchase a home worth $1 million, they can apply to get this rebate.
- The rebate will decrease eventually for the homes priced between $1,000,001 and $1,499,999, not exceeding $1.5 million.
- For example, if anyone will buy the house for $1.5 million, then he/she will not be eligible for the FTHB GST Rebate 2025.
- The buyers can avail themselves of the rebate if they have done their purchase agreement after the 26th of May.
Importance of the FTHB GST Rebate 2025:
- The introduction of this rebate is to help the buyers in purchasing their own house by offering them a rebate of $50000 if they are new buyers.
- This rebate is only applicable to the buyers who have signed the agreement after May 27, 2025.
- After this initiative, some of them will try to cancel the agreement to make themselves qualify to get the rebate, but in this case, the builders have to be cautious about the GST/HST implications that could occur when an agreement is cancelled.
Eligibility Requirements for FTHB GST Rebate 2025:
- There are certain eligibility requirements to avail the FTHB GST Rebate 2025. Every criterion is different from the others.
- The buyer has to be eligible for certain criteria to avail the rebate.
- He/she has to be at least 18 years old.
- He/She has to be a Canadian citizen or a permanent resident
- He/she has to be a new buyer; he/she has to buy the house for the first time.
House Requirements:
- Not every house can be applicable for the rebate. There are some requirements for what type of homes should be purchased:
- Only a newly constructed house bought from a builder.
- If the buyer owns land or has leased land, then the house constructed on that land will also be eligible.
- If a buyer is having shares in a cooperative housing corporation.
Purchase Timing or Date of Agreement:
- The agreement of sale or purchase must have been done after 27th May and before 2031.
- The construction process has to start before 2031 and should end before 2036.
- Transfer of the ownership is necessary. The home should be transferred to the name of the buyer before 2036.
- The buyer has to be the first person to stay in the self-purchased home.
FTHB GST Rebate 2025 Maximum Amount:
- The rebate will be 100% of the GST or HST up to $50,000 for the amount of the house, $1 million.
- The rebate amount will be lower eventually for the homes priced between $1,000,001 and $1,499,999.
- For the houses valued at $1.5 million and higher, there is no rebate applicable.
FTHB GST Rebate 2025 Limitations:
- This rebate is meant for the first buyers, but there are some exceptions.
- The buyers can claim and have the rebate only once.
- If the applicant is married and his/her spouse has already claimed the benefit, then the other person cannot avail it.
- The claim request will not be accepted if the date of agreement was signed before the 27th of May.
- The FTHB GST Rebate is not available if the purchase and sale agreement was cancelled and then made again to qualify for the FTHB GST Rebate.
Conclusion: FTHB GST Rebate 2025
There are certain exceptions; you have to remember that not all buyers can avail the rebate. When the news was declared that the government would abolish the GST for the new buyers, everyone got elated. The announcement was done on 20th March, 2025. The new buyers who have done the contract with the builder after the declaration will not be eligible for the rebate. The Canada Revenue Agency will minutely check the details before giving the approval to be eligible for a rebate.
If a buyer will buy a two-bedroom house instead of a one-bedroom, then he/she will qualify for the rebate if the buyer needs the extra space for their growing family. There are some provinces—Nova Scotia, New Brunswick, Newfoundland and Labrador, Ontario, and Prince Edward Island—that have not disclosed if they will abolish the HST on the new home sales for new buyers.
With the changing policies, you can just make yourself aware and get the benefit by applying for these rebates and tax reliefs, as it can lessen the challenges faced by new homebuyers in Canada. It is still unknown to everyone how these policies will be impacted and how they will play their role in the economy, but as a citizen, if you are planning to buy a new house, then stay informed about the changes.